- Ripple Labs and the SEC have filed a joint request to suspend their appeals as they work toward a negotiated resolution.
- The parties have reached an agreement-in-principle, but it still requires final approval from the SEC Commission.
- The resolution could mark the end of a legal battle that began in December 2020, with XRP price already up 300% since Trump’s election.
Ripple and the Securities and Exchange Commission submitted a joint filing on Wednesday to suspend their appeals in their long-running legal dispute as they work toward a negotiated settlement. According to court documents filed with the U.S. Court of Appeals for the Second Circuit, the two parties have already reached an agreement-in-principle that would end the years-long legal battle.
The filing represents the first official confirmation that the SEC is dropping its October appeal, while Ripple is also withdrawing its cross-appeal. This development aligns with Ripple CEO Brad Garlinghouse’s statement last month indicating the SEC would be abandoning its appeal.
“The parties require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court,” states the jointly signed filing. The document clarifies that while an agreement has been reached in principle, it still needs formal approval from SEC commissioners.
Final approval may come after Paul Atkins, President Trump’s nominee for SEC chairman, takes office. Having received Senate confirmation on Wednesday, Atkins’ swearing-in could happen within days.
A Four-Year Legal Battle Nears Conclusion
The potential resolution would end litigation that began in December 2020, when the SEC sued Ripple, alleging the company raised $1.3 billion through unregistered securities sales since 2013. In July 2023, Judge Analisa Torres ruled largely in Ripple’s favor, finding that third-party XRP sales on exchanges didn’t constitute securities offerings.
However, the SEC filed an appeal in October, contesting portions of the ruling regarding Ripple’s direct offerings of XRP and personal token sales by executives Brad Garlinghouse and Christian Larsen. With this appeal now being suspended pending resolution, the cryptocurrency market has already reacted.
Market Impact and Future Outlook
XRP’s price has surged approximately 300% since Donald Trump‘s November 5 election victory, largely based on expectations that a more crypto-friendly administration would facilitate resolution of the Ripple-SEC case. However, according to data from CoinGecko, XRP showed only a modest 0.2% increase in the 24 hours following this latest development, suggesting the resolution may already be priced into the market.
The joint filing indicates both parties are now focused on finalizing terms of their agreement rather than continuing with costly litigation, potentially setting precedent for how digital assets might be regulated in the evolving crypto landscape.
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